Bankruptcy Directory

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Bank levy is seizure of money lying in the bank account of the tax payer. In all cases of levy, thirty days notice is given by the IRS to the tax payer. This is the final notice for intent to levy and this gives the tax payer a chance to seek relief from proposed action by asking for collection due process hearing.
In the case of bank levy, there is another opportunity as the bank is not required to hand over the money lying in the tax payer’s account immediately. The money is required to be paid after twenty one days and this period can be utilized by the tax payer to negotiate with the IRS or work out a plan for payment of tax.
However, while this may lead to relief from future levy action it is unlikely to lead to withdrawal of levy action already taken unless the entire tax debt is cleared immediately.
The silver lining to bank levy is that it is not a continuous levy. Once the money lying in the bank account on the day of the levy is paid up to the IRS, the bank account can be operated normally. Future deposits in the bank account are not required to be handed over to the IRS unless, of course, another levy is done on the bank account.
A wage garnishment, on the other hand, is a continuous levy. The wages of the tax payer are required to be handed over to the IRS on a monthly or weekly basis depending on when it becomes due for payment.
One levy order from the IRS is enough to seize the wages repeatedly every week or every month until the entire taxes are recovered along with interest and penalty. The employer or the bank on which the levy order is served have no choice in the matter.
If the money due to the tax payer is not handed over to the IRS, they are treated as defaulters for the levied amount. In the case of wages, however, the law does not require the entire wages to be turned over to the IRS. Certain amount required for the basic living needs of the tax payer are exempted from the levy.
The tax payer has to furnish information in the matter through his employer. Apart from basic living expenses, the statutory payments such as child care payments or alimony are also exempted. Publication 1494 of the IRS gives the tables for figuring the exempt amounts.
While wage garnishment can spoil a person’s reputation at the work place, his employer cannot fire him for this reason. The law provides protection against this. The bank also has to provide all the services as before.
Nevertheless, it is best to avoid the above situation by negotiating a plan of payment of tax dues with the IRS well before the matters go out of hand. You should remember “A Levy is a legal seizure of your property to satisfy a tax debt. Levies are different liens. ”

The Arizona bankruptcy courts have kept in line with the rest of the country to make sure that all claims are dealt with fairly and justly. Not everyone is able to file for bankruptcy and it’s up to these courts to make sure that the system is not abused. The Arizona bankruptcy courts do have a web site that can provide people with all the information that they will need to begin investigating their claims and find guidance on the right places to look for this help.
Arizona Bankruptcy Court Information
The Arizona bankruptcy court has an up-to-date facility that uses the latest technology and devices to ensure that your case is dealt with professionally and within a strict guideline. They also provide headsets for those who have hearing disabilities as well as telephone and Internet facilities to access fast and up-to-date information. They can also provide remarkable presentation systems for court cases and kiosks for refreshments during your wait and court appearances; as well telephone and video conferencing facilities to help you with your case.
The Web site also contains information that can help you find information for the debtor and the creditor, as well as information on anything that affects your individual case. This can help you answer a lot of your own questions, thus saving you time as well as stress.
If you happen to require information or access to certain forms with regards to your case or publications that may help you in finding a solution, you may be able to access this data on the Arizona bankruptcy court Web site. The Web site will also show information on the court calendars as well as provide access to many of their online facilities.
The good thing about this web site is that the site is user-friendly with most of the information available at your fingertips when taking the steps towards filing for your bankruptcy. Whether you’re an individual filing for bankruptcy or an organization that requires information with regards to clients who have filed for bankruptcy, the information is all there and readily available. This web site is filled with plenty of good facts and instructions and can be found at the following web address: http://www. azb. uscourts. gov/Default. aspx
This web site can also be translated into Spanish with a simple click of a mouse to make it easier for all who need access to this important information. As well, there are various links on the site that may help you with your bankruptcy case.

Chapter 11 bankruptcy provides protection to businesses and individuals that carry high levels of debt. Also known as “reorganization bankruptcy”, Chapter 11 provides debtors with the option to restructure debt and become financially revitalized.

Using chapter 11 bankruptcy protection, debtors are allowed to hold onto personal and business assets such as real estate, commercial buildings, automobiles and equipment. During the bankruptcy process debtors must obtain credit counseling, submit a debt repayment plan, and obtain bankruptcy confirmation through the U. S. Trustee creditor committee.

Chapter 11 petitions are more costly and time consuming than any other bankruptcy chapter. Strict guidelines are imposed and stringent repayment requirements often cause many debtors to fail out of bankruptcy; losing all protection from the court. Bankruptcy experts claim only about 10-percent of chapter 11 reorganization bankruptcies end in success.

The low rate of success primarily stems from the fact that Chapter 11 bankruptcy is utilized by the mega-wealthy and large corporations. Recent chapter 11 filings include Reader’s Digest, Washington Mutual bank and Lehman Brothers.

Chapter 11 bankruptcy petitions must be confirmed through the U. S. Trustee creditors committee. Committee members vote to deny or approve submitted repayment plans. Debtors must file a disclosure statement outlining financial information regarding assets, liabilities, and finances.

The disclosure statement is essential for obtaining bankruptcy confirmation. Information provided in the statement allows the Trustee’s committee to make informed decisions regarding debtors’ financial ability to reorganize and repay debts.

Once chapter 11 bankruptcy is confirmed, the court oversees finances until outstanding debts are fully paid. Corporations are required to repay creditor debts before making financial distributions to shareholders.

Although Chapter 11 is exceptionally complex, it offers more flexibility than other bankruptcy chapters. Multi-dimensional options add layers of flexibility not found in personal bankruptcy options. The flexible options of Chapter 11 provide debtors with multiple options to restructure debt.

A qualified bankruptcy lawyer is necessary when filing for Chapter 11 bankruptcy. Attempting to file Chapter 11 without an attorney would be committing financial suicide. Congress enacted new bankruptcy laws in 2005 that impose strict rules and regulations. One improper form or missed deadline could result in dismissal of the bankruptcy petition.

Two credible sources for obtaining information and resources regarding Chapter 11 bankruptcy include Cornell University Law School and the U. S. Trustee Program; a division of the United States Department of Justice.

Individuals and business owners should understand the risks and rewards of filing Chapter 11 bankruptcy. Consult with bankruptcy attorneys and conduct research at the above mentioned websites.

Deciding to file bankruptcy is never an easy decision. However, the more you know, the better prepared you will be to end up in the 10-percent of successful transactions, instead of the 90-percent that fail.

Chapter 13 bankruptcy is a repayment plan for all your debts.   It is away to reorganize what you owe, get lower interest rates and have 3 to 5 years to pay them back.   The reason some people like to file this bankruptcy instead of chapter 7, is because you will get to keep your assets.

Step by step How To File for Chapter 13 bankruptcy

3.   Now you must provide information to the Chapter 13 case trustee:

Bankruptcy Forms:

4.   When the filing is done you will be appointed an impartial trustee to administer the case.

5.   After 20 to 50 days after you file the your trustee will hold a meeting of creditors.   This is where you meet with all you creditors and answer any questions they may ask.

6.   Unsecured creditors will file their claims with the court within 90 days of the creditors meeting

7.   After the meeting you, the trustee and creditors will go to court to hear the repayment plan.

8.   The court will then decide if your bankruptcy is approved.

Normally, bankruptcy is considered to be the best option at times when you are suffering from severe debts problems. If you declared yourself bankrupt you can get easily rid from paying unlimited debts issues. Though, there are other bad financial consequences which may not be predicted. It is advisable before declaring yourself bankrupt first consider with good company and collects all the pros and cons of bankruptcy. With assistance of these services you can get proper guidance then how you’ll overcome from this problem and enhance your credit position once again?

If you have limited source of income but you have unlimited creditors then generally people think that bankruptcy is possible to be the feasible option. But it is not exactly truth. Before taking this big step you need to consider with bankruptcy information service provider which inform you about all the negative and good aspect of bankruptcy.   Though, as a part of bankruptcy service they collect all the financial related information of yours and check the best repayment option for you which saves you from becoming bankrupt.

There are various IVA bankruptcy service provider are available in the market. You can search best service provider directly online and apply with them online. But before selecting anyone check their authenticity and their past records to avoid any future trouble. IVA assists in avoiding bankruptcy. Before starting the application the concerned IVA Company who will handle your case ask about the complete details concerning with financial transition and asset. Accordingly recommend your case to their professional who will work on your profile.

Steps involved in your Bankruptcy Application:

Whenever you are surrounded by various debts and you’ll think of declaring yourself bankrupt you can take assist of IVA bankruptcy and deal with your financial problems easily.

Image taken on 2010-10-23 19:16:48 by © Photography By CalvinCropley.

How much time do I have to move after my home has been sold at a foreclosure sale?

After the foreclosure sale there is a 10 day upset bid period before the sale becomes final. After that time has passed and there have been no upset bids the sale then becomes final. At that point the third party buyer, the lender, or the foreclosure trustee who purchases the property or represents the purchaser of the property at the foreclosure sale will then send you a letter, probably via certified mail, stating that you have 10 days to voluntarily vacate the home. Once the ten days period in the letter has expired the third party buyer or lender will apply to the Clerk of Superior Court for an Order for Possession. If the Clerk allows the Order for Possession that order will direct the sheriff to remove all occupants and their personal property from the premises within 7 days of receipt.

So, in general you really don’t have much time, this eviction process is much shorter than your typical landlord-tenant eviction. If you need a week or two to transition to another home or apartment contact the trustee or the buyer (contact the party that sends the ten day notice letter) and explain your situation. Most often they will give you a limited time to move you and your possessions from the residence. If you do not make the effort to contact them, they will more than likely move the application for an Order for Possession along as swiftly as possible.

For more information on foreclosure and foreclosure alternatives, please visit:  http://zellersrudd. com/areas_of_practice/charlotte_foreclosure_alternatives. aspx 

Chapter 13 bankruptcy law is at times referred to as the wage earners plan. It allows debtors with regular income to pay part, or better still, the full amount of their debt in installments. In this way the debtor is able to retain his property but still pay the full amount of his debts in the course of time. The debtor therefore is allowed to pay the debt owed in amounts that he can afford on a regular basis. Compared to chapter seven of bankruptcy of liquidating the debtor’s property, this chapter is more advantageous. The most obvious advantage being that the individual is able to save his property when faced with insolvency. It is also easy to make plans to pay loans in a period not exceeding five years. It also acts as a loan whereby a trustee is appointed making it easy for the collection of loans and repayment towards the creditors. This way, debts are paid without the debtor coming into contact with the creditors. Unlike chapter 7 which allows all types of debtors ranging from partnerships to individuals, chapter 13 of bankruptcy does not deal with cases of partnerships and corporations. Just like in chapter 7, the individual is not eligible for this chapter if the debtor had previously been dismissed from another petition due to failure to turn up in court. Just like in other chapters on insolvency, the debtor’s petition will not be received or worked on if they have not received counseling on financial matters. This counseling is to help the individual in making reasonable decisions concerning credit. This is done whether or not the debtor is in a position to repay the debt.

In today’s society it is very easy to get a credit card. Unfortunately, some people obtain too many credit cards, then cannot keep up with the payments. The credit card company sends you a notice of default, and threatens a lawsuit. Then, either the lawsuit arrives, or, your claim is turned over to the dreaded collection agency, who again threatens a lawsuit.

Based upon my experiences with my clients, I have also found that collection agencies threaten other things, like garnishing your wages. I actually like those words coming from my client’s mouth, because it means that the debt collector has violated the federal Fair Debt Collection Practices Act, and my client now has a lawsuit against the debt collector.

In Pennsylvania, neither a credit card company nor a debt collection agency can garnish your wages at any time, even though they may threaten to do so.

Garnishment of wages in PA can only occur in very limited circumstances. The first circumstance is for child or spousal support. The second circumstance is for recovery of PHEAA student loans. The third is after a judgment is obtained for room and board of 4 weeks or less. Fourth, for back rent on a residential lease, and fifth, to satisfy obligation relating to a final divorce distribution.

As you may have noticed, collection on a civil credit card debt is not one of the listed circumstances where garnishment may occur. However, it must be noted that a credit card company or a debt collection agency can garnish your bank account IF they first obtain a valid judgment against you in a court of law. Threats to garnish accounts prior to obtaining a judgment are violations of federal law. It must also be noted that once your wages are deposited into your bank account, they are no longer wages. They merely mesh into the corpus of your bank account, and become subject to garnishment if a judgment against you is obtained.